TOTAL QUALITY MANAGEMENT: TQM
Origins, Evolution & key elements
What is Quality? Quality is “fitness for use” (Joseph Juran) Quality is “conformance to requirements” (Philip B. Crosby) Quality of a product or services is its ability to satisfy the needs and expectations of the customer
Evolution of Quality Management Inspection
Salvage, sorting, grading, blending, corrective actions, identify sources of non-conformance
Quality Control
Develop quality manual, process performance data, self-inspection, product testing, basic quality planning, use of basic statistics, paperwork control.
Quality Assurance
Quality systems development, advanced quality planning, comprehensive quality manuals, use of quality costs, involvement of non-production operations, failure mode and effects analysis, SPC.
TQM
Policy deployment, involve supplier & customers, involve all operations, process management, performance measurement, teamwork, employee involvement.
Deming’s view of a production as a system Receipt & test of materials Suppliers, materials & equipment
Production, assembly, inspection
Design & redesign
Distribution
Test of processes, machines, methods, cost
Consumer Research
Consumers
Deming’s Chain Reaction Improve Quality Cost decreases because Provide jobs and of less rework, fewer more jobs Stay in business
mistakes, fewer delays, snags, better use of machine time and materials
Productivity improves Capture the market with better quality and lower price
The Deming Cycle or PDCA Cycle PLAN
ACT
Plan a change to the process. Predict the effect this change will have and plan how the effects will be measured
Adopt the change as a permanent modification to the process, or abandon it.
DO
Implement the change on a small scale and measure the effects
CHECK Study the results to learn what effect the change had, if any.
W. Edwards Deming’s 14 Points
1) Create constancy of purpose towards improvement of product and services.
2) Adopt the new philosophy. We can no longer live with commonly accepted levels of delays, mistakes, defective workmanship.
3) Cease dependence on mass inspection. Require, instead, statistical evidence that quality is built in.
4) End the practice of awarding business on the basis of price tag.
W. Edwards Deming’s 14 Points 5) Find problems. It is management’s job to work continually on the system.
6) Institute modern methods of training on the job. 7) Institute modern methods of supervision of production workers. The responsibility of foremen must be changed from numbers to quality.
8) Drive out fear that everyone may work effectively for the company.
W. Edwards Deming’s 14 Points 9) Break down barriers between departments. 10) Eliminate numerical goals, posters and slogans for the workforce asking for new levels of productivity without providing methods.
11) Eliminate work standards that prescribe numerical quotas.
12) Remove barriers that stand between the hourly worker and his right to pride of workmanship.
W. Edwards Deming’s 14 Points 13) Institute a vigorous programme of education and retraining.
14) Create a structure in top management that will push everyday on the above 13 points.
Deming’s System of Profound Knowledge Appreciation for system
Theory about knowledge
Knowledge about variation
Knowledge of psychology
Joseph M. Juran and the Cost Of Quality 2 types of costs: Unavoidable Costs: preventing defects (inspection, sampling, sorting, QC) Avoidable Costs: defects and product failures (scrapped materials, labour for re-work, complaint processing, losses from unhappy customers
“Gold in the Mine”
Joseph M. Juran and the Cost Of Quality Costs Total Costs
Unavoidable costs
Avoidable costs 100% defective
Point of “Enough quality”
What is TQM? Constant drive for continuous improvement and learning.
Result Focus
Actions not just words (implementation)
Management by Fact
Passion to deliver customer value / excellence
Process Management
Concern for employee involvement and development
Organisation response ability Partnership perspective (internal / external)
LEARNING AND TQM Learning Process Improvement Quality Improvement Customer Satisfaction
Shareholder Satisfaction
Employee Satisfaction
BASIC PRINCIPLES OF TQM Approach Scope Scale
Management Led Company Wide Everyone is responsible for Quality
Philosophy
Prevention not Detection
Standard
Right First Time
Control
Cost of Quality
Theme
On going Improvement
FOUR KEY PRINCIPLES
•Measure quality so you can affect it •Focus on a moving customer •Involve every employee •Think long term - Act short term
THE CASE FOR QUALITY 1 Success of competitors who take quality seriously 2 Rising expectations of customers 3 Quality differentiates companies from the competition 4 Narrowing of supplier bases by quality conscious companies .
THE CASE FOR QUALITY 5 Growing evidence that growth in market share comes from sustained quality. 6 Cost advantages 7 High cost of catastrophic failure 8 Inspection poor substitute for right first time
SEVEN DEADLY SINS OF TQM •Flight to nowhere •One size fits all •Substituting TQM for leadership •Inside - Out indicators •Mandatory religion •Quality kept as a separate activity •Teaching to the test Booz-Allen & Hamilton
IS QUALITY A SOUND INVESTMENT? Year 1988 1988 1989 1990 1990 1990 1991 1992 1992 1992 1993 1994
Company Stock Growth (Oct 94) Motorola 373.0% Westinghouse (CNFD) - 49.6% Xerox (BPS) 75.9% General Motors 1.6% Federal Express 10.6% IBM (IBM Rochester) - 34.9% Selectron 526.9% AT&T (UCS) 32.2% AT&T (TSBU) 32.2% Texas Instruments (DS&E) 106.8% Zyta 8.4% Eastman Chemical 18.5%
Total Stock Value Standard & Poor 500 Stock value Source: US Dept. of Commerce Study 1995
£23016 (91.8% growth) £15911 (32.6% growth)
Q Project Quality Assurance Project Quality Plan PQP
Project Quality Plan Definition • The project quality plan is a documented description of the project management system and must be approved by the AEM, in part to demonstrate his commitment to quality but primarily it is the means by which technical and administrative authorities are delegated through out the project. • All projects shall have quality plan. • Project engineer shall develop and update the PQP. .
Relationships between project quality plans PQP ADCO PQP Designer PQP construction contractor
Suppliers quality plans
Preparation of a project quality plan Confirm project objectives
AEM/PE/HE
Plan the project allocate resources
AEM/PE
Identify critical activities
HE/HC/PE
Define standards and controls
DE/CE/PE
Audits
QA/SCE/PE
Close-out
PE
CONTENTS OF TYPICAL PROJECT QUALITY PLAN
1. COVER SHEET + REVISION CONTROL 1.1 Document purpose 1.2 Policy statement 2.INTRODUCTION 2.1 2.2 2.3 2.4
Background Project Scope Project Objectives & Constraints QA Standards (Consider putting in Document purpose)
CONTENTS OF TYPICAL PROJECT QUALITY PLAN 3. EXECUTION STRATEGY 3.1 3.2 3.3 3.4 3.5 3.6
Project Management risks. Critical Activities. Control Strategy. Cost & Schedule. HSE Plan. Commissioning & Hand-over.
CONTENTS OF TYPICAL PROJECT QUALITY PLAN
4.ORGANISATION, RESPONSIBILITES & INTERFACES 4.1 Table with names 4.2 External interfaces 4.3 Definition of specific roles and responsibilities. 5. QUALITY REFERENCE SYSTEM 5.1 Controlling Documents 5.2 Applicable Procedures (Check list based) 6. INTEGRATION OF CONTRACTORS & SUPPLIERS 6.1 Define Contractor interfaces. 6.2 Contractor + Supplier Quality System.
CONTENTS OF TYPICAL PROJECT QUALITY PLAN 7.AUDITS & REVIEWS This section should include schedule for: * PHSER * HAZOP * TECHNICAL REVIEWS * LESSONS LEARNT REVIEW. 8. QUALITY IMPROVEMENT 8.1 LESSONS LEARNT 8.2 CLOSE-OUT REPORT
* HSEIA * VE * QA AUDITS
CONTENTS OF TYPICAL PROJECT QUALITY PLAN PREPARATION & APPROVALS: PREPARE: ENDORSE: APPROVE:
PE, PM and / or Team Leaders AEM EPM
Timing The nominated PE, PM or Team leader shall develop the PQP immediately after receiving the PID document and approval of the project in the Business Plan.
Quality is a Journey, not a Destination